Businesses, Public Play Vital Role In Strengthening Malaysia’s Energy Security Amid Geopolitical Tensions
By Harizah Hanim Mohamed
KUALA LUMPUR, Aug 11 (Bernama) -- Businesses and the public have a vital role in supporting Malaysia’s energy security, which has become increasingly important, as global geopolitical tensions continue to disrupt the energy landscape.
These uncertainties also prompt businesses and individuals to reevaluate priorities as more recognise the importance of sustainability and the energy transition.
Emerging EPC Sdn Bhd director for sustainability and strategic development Dr John Loh said the West Asia conflict has heightened uncertainty across the energy supply chain, affecting freight costs, imported materials, delivery schedules and overall project planning, particularly for industrial small and medium enterprises (SMEs) that rely heavily on imported equipment, and which operate on tighter margins.
Emerging EPC is a system integrator specialising in customised oil and gas equipment and process packaging that serves growing international demand across multiple markets.
"For us, the current global uncertainties reinforced the importance of the transformation journey we began in 2022, anchored on sustainability, digitalisation and energy resilience.
"These efforts reflect our belief that sustainability, digitalisation and energy resilience are no longer optional but critical enablers for future-ready businesses and stronger supply chain readiness," he told Bernama.
According to data from the World Bank and the International Energy Agency (IEA), Malaysia's per capita energy consumption remains relatively high compared with regional peers, while its level of energy efficiency still trails that of more advanced East Asian economies.
International experience has demonstrated that energy efficiency measures can play a significant role in preserving supply stability during periods of global price pressure.
The European Union, for example, reduced natural gas consumption by around 15 per cent to 18 per cent in 2022, while Japan and South Korea lowered energy demand by approximately eight to 10 per cent between 2022 and 2023 through behavioural changes and improved energy management practices.
While recent assurances on fuel supply have helped reinforce public confidence, there is a risk that Malaysians may become complacent in managing energy consumption and preparing for a prolonged period of market volatility.
To tackle the adverse impact from the conflict, Loh said businesses can contribute by improving operational efficiency through technologies such as logistics optimisation, artificial intelligence and process standardisation, which can help ease pressure on the domestic energy system.
Sustainability Journey
He noted that Emerging EPC's sustainability journey began in 2022, driven by the belief that sustainability, environmental, social and governance (ESG) practices and decarbonisation are essential to strengthening long-term business resilience and competitiveness.
The company is among the early oil and gas services and equipment (OGSE) SMEs to voluntarily publish annual sustainability reports aligned with internationally recognised frameworks, including the Global Reporting Initiative and Bursa Malaysia's sustainability framework.
"We have successfully completed three consecutive sustainability reporting cycles, strengthening internal governance, stakeholder engagement and performance tracking capabilities," he said.
In 2024, Emerging EPC completed its first greenhouse gas accounting exercise based on International Organisation for Standardisation methodology, reinforcing its commitment to energy conservation and resource efficiency across its operations.
The company also began systematically monitoring electricity consumption, fuel usage, waste generation and operational emissions across its offices, engineering operations and fabrication yard to support more informed sustainability planning and reporting.
As part of its broader energy transition efforts, the company has invested in rooftop solar photovoltaic installations to reduce dependence on grid electricity and lower carbon emissions.
It has also implemented an enterprise resource planning system and developed its Emerging Asset Reliability and Sustainability (EARS) platform to improve equipment reliability, energy monitoring and data-driven decision-making.
“Building a sustainable and resilient OGSE ecosystem also requires industry-wide collaboration. We participate in Petronas' Supplier Support Programme (PSSP), a purpose-built initiative aimed at helping OGSE companies strengthen sustainability capabilities and accelerate readiness for a lower-carbon future.
"Beyond our transformation journey, we believe building a sustainable and resilient OGSE ecosystem requires industry support and collaboration,” Loh added.
"We have had the opportunity to join engagements with Petronas, one of which is, its PSSP, to gain more insights on how as a company, we can further enhance our sustainability reporting, carbon management, digitalisation and ESG implementation," he added.
The programme focuses on capacity building, sustainability disclosure and access to sustainable financing, with the aim of strengthening supplier capabilities, improving compliance and enhancing overall supply chain resilience.
On June 10, the Ministry of Finance said although the global petroleum market has recently shown signs of greater stability, uncertainties surrounding physical supply, global inventory levels and seasonal demand continue to influence international oil markets.
The government estimates that subsidies for RON95 petrol and diesel will remain elevated at about RM3.5 billion per month at current prices, underscoring the fiscal burden associated with maintaining domestic fuel affordability.
Apart from that, the government has repeatedly called for Malaysians to be prudent in fuel use to stretch the buffer as global uncertainties are expected to persist.
-- BERNAMA